Lowball Watch – California

The Los Angeles Times reports a settlement of the controversy between the San Gabriel Valley light-rail project and a property owner whose 4.8-acre tract of land is being acquired for it. Dan Weikel, Gold Line and Landowner Reach Accord, L.A. Times, Feb. 15, 2010, at p. AA4. For the entire L.A. Times article click here.

According to this story, the  light-rail officials originally offered the owner $5.8 million, which he rejected. There was also collateral litigation in which the owner charged members of the authority with conflict of interest and violation of environmental laws.

Bottom line: the litigation settled for $24 million which comes to over four times the original offer, and is exactly what the owner demanded to begin with. The light rail authority folks aver that, notwithstanding these figures, litigationg this controversy to its bitter end would have resulted in a two-year delay and cost an additional $100 million.

We can dig the delay, but doesn’t California law provide for quick-take, whereby the condemnor can take the subject land as soon as the condemnation litigation starts, with compensation determined later? It does.